Required

a. Prepare a contribution income statement for July.

b. Determine Jail and Sail's monthly break-even point in units.

c. Determine Jail and Sail's margin of safety in units for July.

d. Determine the unit sales required for a monthly after-tax profit of $20,000.

e. Prepare a cost-volume-profit graph. Label the horizontal axis in units with a maximum value of

4,000. Label the vertical in dollars with a maximum value of $600,000. Draw a vertical line on

the graph for the current (2,200) unit level and label total variable costs, total fixed costs, and total

before-tax profits at 2,200 units.